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Economics Mcqs 4423 MCQs [All-Courses]

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Economics MCQs cover fundamental concepts of microeconomics and macroeconomics, including demand and supply, inflation, national income, and economic policies.
This section is designed to strengthen analytical skills and conceptual understanding for competitive examinations.
Highly useful for PPSC, FPSC, NTS, OTS, KPPSC, and other testing services preparation.

All Topics  4423

A monopoly may be self-perpetuating because profits may be used for ?
A research
B cost-saving
C technical advance
D all of the above
Correct Answer: all of the above
Comparing a monopoly and competitive firm, the monopolist will ?
A produce less at a lower price
B produce more at a lower price
C produce less at a higher price
D produce less at a lower price
Correct Answer: produce less at a higher price
Where a tax can be shifted, the incidence depends on ?
A Whether there is perfect or imperfect information
B elasticities of demand and supply
C how many producers there are:
D who is legally obliged to pay the tax
Correct Answer: elasticities of demand and supply
Tax incidence is the ?
A behaviour of shifting the tax to another party.
B structure of the tax
C ultimate distribution of a tax’s burden.
D measure of the impact the tax has on employment and output
Correct Answer: ultimate distribution of a tax’s burden.
VAT is a good example of which kind of tax ?
A Specific
B Exercise duty
C Direct
D Ad valorem
Correct Answer: Ad valorem
Economists use the term Black Markets for situations where ?
A goods are sold at prices above legal or official price.
B buyers and/or sellers are not paying taxes as they should
C illegal substances are sold
D transactions are not recorded in the GDP figures.
Correct Answer: goods are sold at prices above legal or official price.
If the market price is below the equilibrium price ?
A quantity demanded will be greater than quantity supplied
B quantity demanded will be less than quantity supplied
C demand will be less than supply.
D quantity demanded will equal quantity supplied .
Correct Answer: quantity demanded will be greater than quantity supplied
It is necessary to ration a good whenever ?
A supply exceeds demand
B a surplus exists
C there is perfectly inelastic demand for the good
D demand exceeds supply
Correct Answer: demand exceeds supply
A price ceiling is ?
A a maximum price usually set by government that sellers may charge for a good
B the different between the initial equilibrium price and the equilibrium price after a decrease in supply
C a minimum price usually set by government that sellers must charge for a good
D a minimum price that consumers are willing to pay for a good.
Correct Answer: a maximum price usually set by government that sellers may charge for a good
Nationalisation occurs when ?
A The government sells assets to a the private sector
B The government bans a product
C The government takes control of an industry
D The government taxes a product to a raise its price
Correct Answer: The government takes control of an industry
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